The future of Europe’s electronics industry is being reshaped by a single deal: the new transatlantic tariff agreement. Starting August 1, 2025, most European electronics exports to the U.S. will face a unified 15% tariff, adding an estimated €9.8 billion in annual duties. This new paper from the Global Electronics Association examines how the agreement alters competitiveness,  raising costs for U.S. importers and consumers, disadvantaging European firms, and tilting the field toward competitors in Mexico and Asia.

It also explores the broader move away from WTO “Most Favored Nation” principles, signaling a shift toward a more fragmented and politicized global trade system. Against this backdrop, the analysis details how higher U.S. tariffs compound Europe’s existing challenges, high energy prices, regulatory burdens, and supply chain risks, while underscoring the urgency of a coordinated European industrial strategy across the electronics value chain.